Professional Documents
Culture Documents
TH TH
TH TH
Readings
Michael Todaro, 12th ed. Chapter 12
Dominick Salvatore, 11th ed. Chapters 2&3
Seminar questions
1. Please define following terminologies:
Economic growth an increase in the amount of goods and
services produced per head of the population over a period of time.
International trade exchange of capital, goods, and services
across international borders or territories.
Globalization the increasing integration of national economies
into expanding international markets.
Development the process of improving the quality of all
human lives and capabilities.
2. Why some countries got richer than others? What is the role of
international trade in economic growth?
Case B US UK
Wheat (bushels/hour) 4 1
Cloth ( yards/hour) 3 2
Case C US UK
Wheat (bushels/hour) 4 1
Cloth ( yards/hour) 2 2
Case D US UK
Wheat (bushels/hour) 4 1
Cloth ( yards/hour) 2 1
12. What do the above examples tell us about the benefits of trade?